The Federal Trade Commission (FTC), along with two international consumer protection networks—the International Consumer Protection and Enforcement Network (ICPEN) and the Global Privacy Enforcement Network (GPEN)—have announced the results of a comprehensive review examining the use of dark patterns in subscription services and their impact on consumer privacy.

The review scrutinized 642 websites and mobile apps offering subscription services globally and in multiple languages. Conducted between January 29 and February 2, 2024, by officials from 27 authorities across 26 countries, the findings reveal a concerning prevalence of manipulative digital design techniques.

 The ICPEN review focused on dark patterns in subscription services, while the GPEN review, involving more than 80 privacy enforcement authorities, concentrated on design patterns that encourage the disclosure of more personal information than intended. Both reviews found that the majority of examined websites and apps utilized at least one dark pattern, raising significant concerns about their impact on consumer privacy and decision-making.

Nearly 76% of the examined sites and apps employed at least one dark pattern, and almost 67% used multiple dark patterns. These techniques, which include sneaking practices and interface interference, manipulate consumers into making purchases or disclosing personal information they might otherwise avoid.

Key Findings:

• Prevalence: Out of 642 websites and mobile apps examined, 75.7% used at least one dark pattern, and 66.8% used multiple dark patterns. Only 156 did not use any dark patterns.
  
  
• Sneaking Practices: These include hiding or delaying critical information related to costs. Common tactics were drip-pricing and subscription traps, with 81% of auto-renewal subscription providers making it difficult to turn off auto-renewal.
  
  
• Interface Interference: Techniques such as false hierarchy (38.3%), preselection of more expensive or longer subscriptions, and confirm-shaming were prevalent.
  
  
• Obstruction Practices: Many made the cancellation process significantly harder than enrolling, aiming to dissuade consumers from canceling their subscriptions.
  
  
• Social Proof: About 21.5% of traders used fake activity notifications or claims like “most popular” to influence consumer decisions.
  
  
• Forced Action: In 66.4% of cases, consumers had to provide payment information to access a “free trial.”
  
  
• Urgency and Nagging: Tactics such as countdown timers and repeated pop-ups were used to create a false sense of urgency and push consumers towards making purchases or subscribing.

The report concludes that dark patterns are widespread in subscription services, highlighting the need for businesses to adopt more transparent and ethical practices to protect consumer interests and comply with global regulatory standards.

Implications and Regulatory Focus

The announcement aligns with the FTC’s assumption of the 2024-2025 presidency of ICPEN, an international body comprising consumer protection authorities from over 70 countries. This leadership role underscores the FTC’s commitment to fostering global enforcement cooperation and sharing information to safeguard consumers worldwide.

The FTC has long been dedicated to combating deceptive and unlawful dark patterns. In 2022, it released a detailed staff report, “Bringing Dark Patterns to Light,” highlighting various manipulative practices. The latest findings reinforce the need for continuous vigilance and regulatory action to protect consumers from deceptive digital tactics.

INSIDER TAKE

The collaborative efforts of the FTC, ICPEN, and GPEN highlight the pervasive use of dark patterns in subscription services and their detrimental effects on consumer privacy. As the FTC leads ICPEN, there is a renewed emphasis on global cooperation to enhance consumer protection and ensure fair digital marketplace practices. 

These findings hold significant implications for businesses operating in the subscription sector, with an expectation of increased enforcement based on this study. Businesses should review their operations, customer experience (CX), and marketing strategies in light of this study to ensure compliance and build consumer trust.